Four Facts about Owning Vacation Rentals
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Before
you take the plunge, read on things you should know about owning one. |
Have you ever thought about purchasing a property to use as a vacation
rental?
Maybe youve seen a charming beach bungalow and
know it would be perfect for vacationers.
Or possibly youve stayed in the same cabin every
Christmas for the last five years and now the owner is thinking about selling.
Well, the good news is that if you like to spend time
in a certain property then others will probably feel the same way. Still, there are a few
facts you should think about before you make the big plunge.
Research A vacation rental is
a business and like any other venture you should look into the market before you buy. What
type of people spends their vacations in the area? Knowing who vacations in the area will
help you decide if the home you are looking at is large enough. A single bedroom cottage
might be big enough for honeymooners, but a family is going to need three or more
bedrooms. Make sure you are buying the right property for the market in the area.
Rentability If youre
buying a property that has been a vacation rental in the past, you can easily get the
rental history from the current owner. If not, youll need to look into other
vacation rentals in the same area. Go on vacation rental websites like VacationRentals.com
or HomeAway.com and look up what rates the other owners are charging and how booked their
year is. If they dont seem to be getting much business then you may want to search
for properties in a different area.
Cash Flow Before you buy, you
should figure out if youll be taking in enough money to pay the mortgage and
maintenance fees. Once you figure out the local rates and the average amount of bookings
per year, you can gauge those numbers against your costs. Make sure to add in the amount
for housekeepers, gardeners, and maintenance people. Even if you are going to be doing a
lot of the work yourself you should estimate the cost of your time.
Part-Time Job The place
isnt going to rent itself. Even if you use a service or list it on a number of
vacation-rental websites its still going to take time to set up and maintain. Before
starting your business, be sure you can answer emails and phone calls every day. Make sure
you enjoy dealing with people who want to come to your favorite vacation destination.
Still interested in purchasing a vacation
rental? Well, theres no better place to do it than the Big Island. We have
several properties that have already been vacation rentals in the past and have great
track records.
To review vacation rental properties for sale, please click here.
If youd like more information, please call me at (808)
938-3910 or send me an email.
I'd be more than happy to help you.
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